ACCA Mock Test 10 - Online MCQ Exam

If the net initial investment is $6850000 and the uniform increases yearly cash flows is $2050000, then payback period will be _____________?

1 Mark(s)

Your Answer:

3.34 years 3.34 years
4.34 years 4.34 years
5.34 years 5.34 years
6.34 years 6.34 years

Assuming leisure is a normal good, if the income effect is greater than the substitution effect a wage increase ?

1 Mark(s)

Your Answer:

will have no effect on labour supply will have no effect on labour supply
will decreases labour supply will decreases labour supply
could cause either an increases or a decrease in labour supply
will increase labour supply. will increase labour supply.

American foreign aid after World War II_________________?

1 Mark(s)

Your Answer:

helped the domestic economies of industrial nations
boosted international trade boosted international trade
prevented revolutionary movements from starting in a number of nations
all of the above all of the above

If the current assets are $250000 and the current liabilities are $135500, then the working capital would be ___________?

1 Mark(s)

Your Answer:

$3,855,500 $3,855,500
$314,500 $314,500
$214,500 $214,500
$114,500 $114,500

Formal organizations have_______________?

1 Mark(s)

Your Answer:

clearly stated goals and policies clearly stated goals and policies
no ranking of their members no ranking of their members
little durability little durability
no people in them no people in them

The measures that analyze the performance of a company, such as residual income, economic value added and customer satisfaction are collectively called ____________?

1 Mark(s)

Your Answer:

interactive control systems interactive control systems
belief systems belief systems
boundary systems boundary systems
diagnostic control systems diagnostic control systems

The difference between the flexible budget amount and the corresponding actual result is called ______________?

1 Mark(s)

Your Answer:

corresponding variance corresponding variance
resultant variance resultant variance
flexible budget variance flexible budget variance
static budget variance static budget variance

Set of rules made by corporation founders such as directors election procedure are classified as_________?

1 Mark(s)

Your Answer:

Stock laws Stock laws
By laws By laws
Liability laws Liability laws
Corporate laws Corporate laws

Premeditated politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine agents is the definition of_________________?

1 Mark(s)

Your Answer:

social movements social movements
revolution revolution
coups d,etat coups d,etat
terrorism terrorism

Cooley’s Lookingglass self refers to______________________?

1 Mark(s)

Your Answer:

self-regard based on instinct self-regard based on instinct
a person’s perception as to what others think of him/her
negative self-image negative self-image
positive self-image positive self-image

Inflation ?

1 Mark(s)

Your Answer:

Reduce the cost of living Reduce the cost of living
Reduce the standard of living Reduce the standard of living
Reduce the price of products Reduce the price of products
Reduce the purchasing power of a rupee Reduce the purchasing power of a rupee

The instruments of foreign policy may be defined as_________________?

1 Mark(s)

Your Answer:

tools with which nations try to manipulate other nations
exchanges entered into in the spirit of trust
expressions of human solidarity around the world
ways of competing for the title of superpower

If the operating income is $5650000 and the revenue is $68558000, then the return on sales will be ___________?

1 Mark(s)

Your Answer:

8.24% 8.24%
7.24% 7.24%
9.24% 9.24%
10.24% 10.24%

Financial panic that produce large losses for public can cause ___________?

1 Mark(s)

Your Answer:

serious damage to economy serious damage to economy
problems for investors problems for investors
pulling of funds pulling of funds
soundness of institutes soundness of institutes

The package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called ___________?

1 Mark(s)

Your Answer:

step down product step down product
dual mix product dual mix product
bundled product bundled product
reciprocal product reciprocal product

The elasticity of propoor growth is ?

1 Mark(s)

Your Answer:

the percentage increase in the consumption growth of the poor divided by percentage increase in the consumption growth of the nonpoor
the percentage increase in the poor times percentage increase in the nonpoor
the percentage increase in the poverty of the poor divided by percentage increase in the poverty of the nonpoor
the percentage increase in the poor people in the Urban divided by percentage increase in the nonpoor in the urban

The process of determining the present value of a payment or a stream of payments that is to be received in the future is known as:

1 Mark(s)

Your Answer:

Discounting Discounting
Compounding Compounding
Factorization Factorization
None of the given options None of the given options

The budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to ___________?

1 Mark(s)

Your Answer:

budget production budget production
planned production planned production
setup production setup production
stand by production stand by production

“The ability of one individual or group to control the actions of another individual or group without the latter’s consent” is a definition of____________?

1 Mark(s)

Your Answer:

coercion coercion
violence violence
power power
force force

What is known as ground black-cherry pits in the Middle East ?

1 Mark(s)

Your Answer:

Falafal Falafal
Bangna Cauda Bangna Cauda
Mahlab Mahlab
Baba Ghanoush Baba Ghanoush

The purpose of separating management from ownership is to________________?

1 Mark(s)

Your Answer:

secure the highest possible salaries for managers
ensure that the long-term interests of the corporation outweigh short-term gains
shield absentee owners from any and all responsibility
shield the board of directors from any and all responsibility

The present value of future cash flows is divided by an initial cost of the project to calculate __________?

1 Mark(s)

Your Answer:

negative index negative index
exchange index exchange index
project index project index
profitability index profitability index

A shift in supply will have more effect on price than quantity if ?

1 Mark(s)

Your Answer:

The price elasticity of supply is – 3 The price elasticity of supply is – 3
The price elasticity of supply is – 0.2
The price elasticity of supply is – 2 The price elasticity of supply is – 2
The price elasticity of supply is infinity

In the short run, the supply of capital is ________ and in the long run will depend on _______?

1 Mark(s)

Your Answer:

variable, technology variable, technology
fixed, expectations fixed, expectations
fixed, rental rate of capital fixed, rental rate of capital
variable, interest rates variable, interest rates

If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ?

1 Mark(s)

Your Answer:

shorten the amount of time in which the depreciation leads to smaller trade deficit
shorten the amount of time in which the depreciation leads to smaller trade surplus
lengthen the amount of time in which the depreciation leads to smaller trade deficit
lengthen the amount of time in which the depreciation leads to smaller trade surplus

Scientific observations are based on_________________?

1 Mark(s)

Your Answer:

controlled conditions controlled conditions
precision precision
organization of the data organization of the data
all of the above all of the above

The most likely factor to overcome the low status of a father’s occupation is______________?

1 Mark(s)

Your Answer:

education education
religion religion
hard work hard work
belonging to organized crime belonging to organized crime

An example of a temporary subculture would be_______________?

1 Mark(s)

Your Answer:

the MTV generation the MTV generation
vegetarians vegetarians
monks in a convent monks in a convent
players of chess players of chess

A monopolist maximizes profit by producing the quantity at which ?

1 Mark(s)

Your Answer:

marginal revenue equals marginal cost marginal revenue equals marginal cost
marginal revenue equals price marginal revenue equals price
marginal cost equals price marginal cost equals price
marginal cost equals demand marginal cost equals demand
none of these answers none of these answers

In strategy formulation, the forces that must be focused for industry analysis include ________?

1 Mark(s)

Your Answer:

potential entrants in market potential entrants in market
customer’s bargaining power customer’s bargaining power
supplier’s bargaining power supplier’s bargaining power
all of above all of above

The financial intermediaries that make loans available and accept long term and short term debts for funding are considered as __________?

1 Mark(s)

Your Answer:

activity institutions activity institutions
investment companies investment companies
mortgage companies mortgage companies
finance companies finance companies

Which English alphabet is similar to the shape of an account?

1 Mark(s)

Your Answer:

I I
T T
H H
None None

The suppliers, funds consumers, foreign and government intervening intermediaries are classified as participants of ____________?

1 Mark(s)

Your Answer:

financial markets financial markets
setting interest arte setting interest arte
setting compounding rate setting compounding rate
setting savings rate setting savings rate

The “invisible hand” refers to_______________?

1 Mark(s)

Your Answer:

a feature of Adam Smith,s Wealth of Nations
the belief God exhibited by the Puritans
the fact that prayer results in help the fact that prayer results in help
a belief in ghosts prevalent in the early Middle Ages

A production subsidy that is granted to a producer of an import-competing good ?

1 Mark(s)

Your Answer:

does not require government taxes to finance it
yields the same deadweight welfare loss as an import tariff or import quota
has only a consumption effect deadweight loss
has only a protective effect deadweight loss

Which of the following is an example of foreign portfolio investment ?

1 Mark(s)

Your Answer:

Toyota builds a new plant in the north of England
EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric power station in Scotland
Deutsche Bank of Germany buys some new software from UK Supplier
JCB builds a new plant near Manchester JCB builds a new plant near Manchester

The systematic evaluation of value chain, to reduce costs and high quality, to achieve satisfied customers is known as __________?

1 Mark(s)

Your Answer:

reverse engineering reverse engineering
value engineering value engineering
target engineering target engineering
operation engineering operation engineering

The elderly are a minority because them________________?

1 Mark(s)

Your Answer:

are a small percentage of the population?
are physically weak are physically weak
lack power lack power
cannot defend themselves cannot defend themselves

Financial security with low degree risk and investment held by businesses is classified as________________?

1 Mark(s)

Your Answer:

Treasury bills Treasury bills
Commercial paper Commercial paper
Negotiable certificate of deposit Negotiable certificate of deposit
Money market mutual funds Money market mutual funds

In evaluating messages for advertising telling how the product is better than the competing brands aims at making the ad ?

1 Mark(s)

Your Answer:

meaningful meaningful
distinctive distinctive
believable believable
remembered remembered

The type of index in which the current values of stock are added together and divided by the value of stock on base date, is classified as __________?

1 Mark(s)

Your Answer:

value weighted index value weighted index
herring weighted index herring weighted index
primary market index primary market index
stock market index stock market index

Redemption option which protects investors against rise in interest rate is considered as________?

1 Mark(s)

Your Answer:

Redeemable at deferred Redeemable at deferred
Redeemable at par Redeemable at par
Redeemable at refund Redeemable at refund
Redeemable at finding Redeemable at finding

A _______ allows a specified number of goods to be imported each year, and it not specifies from where the product is shipped and who is permitted to import ?

1 Mark(s)

Your Answer:

import quota import quota
export quota export quota
selective quota selective quota
global quota global quota

The sum of returned working capital and net initial investment is divided by 2 to calculate ____________?

1 Mark(s)

Your Answer:

increase in operating income increase in operating income
average investment over five years average investment over five years
average capital invested average capital invested
average rate of return average rate of return

An internal rate of return in capital budgeting can be modified to make it representative of_________?

1 Mark(s)

Your Answer:

Relative outflow Relative outflow
Relative inflow Relative inflow
Relative cost Relative cost
Relative profitability Relative profitability

In step cost functions, the cost is increased by ____________?

1 Mark(s)

Your Answer:

discrete amounts discrete amounts
same amounts same amounts
linear amounts linear amounts
nonlinear amounts nonlinear amounts

The sate differs from all the other institutions in that_______________?

1 Mark(s)

Your Answer:

it is an abstract concept it is an abstract concept
its political control is complete its political control is complete
membership is compulsory for all residents of its territory except for aliens and visitors
all of the above all of the above

To internalize a negative externality an appropriate public policy response would be to ?

1 Mark(s)

Your Answer:

have the government take over the production of the good causing the externality
ban the production of all goods creating negative externalities
tax the good tax the good
subsidize the good subsidize the good

The bond which is used as insurer to protect investors against the interest rate risk, is classified as ___________?

1 Mark(s)

Your Answer:

zero coupon treasury notes zero coupon treasury notes
zero coupon treasury bonds zero coupon treasury bonds
One payment bonds One payment bonds
zero treasurer bonds zero treasurer bonds

In capital budgeting, number of non-normal cash flows have internal rate of returns are____________?

1 Mark(s)

Your Answer:

One One
Multiple Multiple
Accepted Accepted
Non-accepted Non-accepted

A variable whose value is determined by the model of which it is a part is termed ?

1 Mark(s)

Your Answer:

exogenous exogenous
constant constant
endogenous endogenous
independent independent

Public policy according to elitists tends to reflect______________?

1 Mark(s)

Your Answer:

the demands of the masses the demands of the masses
the values of the elites the values of the elites
the ideals of the society the ideals of the society
the compromises necessary to temper ideals with reality

A firm has paid out Rs. 150,000 as dividends from its net income of Rs. 250,000. What is the retention ratio for the firm?

1 Mark(s)

Your Answer:

12% 12%
25% 25%
40% 40%
60% 60%

If the central bank buys financial securities in the open market to increase the monetary base, this is and example of ?

1 Mark(s)

Your Answer:

lender of less resort lender of less resort
financial intermediation financial intermediation
Open Market operations Open Market operations
Financial regulation Financial regulation

A good example of a primary group is_________________?

1 Mark(s)

Your Answer:

the U.S Army the U.S Army
a family a family
AT&T Corp AT&T Corp
all of the above all of the above

Which of the following promotional budget methods wrongly views sales as the cause of promotion rather than as the result ?

1 Mark(s)

Your Answer:

Affordable method Affordable method
Percentage of Sales method Percentage of Sales method
Competitive parity method Competitive parity method
Objective and task method Objective and task method

Evaluating Your Answers

ACCA Mock Test 10 : Question 1 of 56